Primerica (NYSE:PRI) versus Hagerty (NYSE:HGTY) Critical Review
by Mitch Edgeman · The Markets DailyHagerty (NYSE:HGTY – Get Free Report) and Primerica (NYSE:PRI – Get Free Report) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares Hagerty and Primerica’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hagerty | 1.81% | 5.15% | 1.58% |
| Primerica | 23.20% | 32.45% | 5.35% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Hagerty and Primerica, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hagerty | 0 | 4 | 2 | 1 | 2.57 |
| Primerica | 0 | 6 | 3 | 0 | 2.33 |
Hagerty presently has a consensus target price of $14.00, indicating a potential upside of 3.93%. Primerica has a consensus target price of $315.57, indicating a potential upside of 11.24%. Given Primerica’s higher probable upside, analysts clearly believe Primerica is more favorable than Hagerty.
Insider and Institutional Ownership
20.5% of Hagerty shares are held by institutional investors. Comparatively, 90.9% of Primerica shares are held by institutional investors. 3.7% of Hagerty shares are held by company insiders. Comparatively, 0.6% of Primerica shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Hagerty and Primerica”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hagerty | $1.46 billion | 3.18 | $49.02 million | $0.09 | 149.67 |
| Primerica | $3.29 billion | 2.65 | $751.23 million | $24.90 | 11.39 |
Primerica has higher revenue and earnings than Hagerty. Primerica is trading at a lower price-to-earnings ratio than Hagerty, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Hagerty has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Primerica has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Summary
Primerica beats Hagerty on 10 of the 15 factors compared between the two stocks.
About Hagerty
Hagerty, Inc. provides insurance agency services worldwide. It offers motor vehicle and boat insurance products; and reinsurance products. The company provides Hagerty Media, which publishes contents through the Hagerty Drivers Club Magazine (HDC), video content, and social media channels; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts. In addition, it offers HVT, a valuation tool used by the customer to access current and historic pricing data of collector vehicle models. Further, the company offers Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. Hagerty, Inc. is headquartered in Traverse City, Michigan.
About Primerica
Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement plans. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental and accidental death, and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.